Resource America extends 9% notes to 2015, adds redemption option

By Angela McDaniels

Tacoma, Wash., Sept. 2 – Resource America, Inc. modified its $10 million principal amount of 9% senior notes due 2015 on Thursday to extend the maturity date to March 31, 2018 and to include an early redemption feature, according to an 8-K filing with the Securities and Exchange Commission.

The company now has the option to redeem the notes at 102% of par before March 31, 2016, at 101% of par between March 31, 2016 and March 31, 2017 and at par thereafter.

All other terms of the notes are unchanged.

According to the company’s latest 10-K filing with the SEC, the company privately placed $18.8 million of the notes in 2009 with five-year detachable warrants to purchase 3,690,195 shares. Under their original terms, the notes were due to mature in 2012 and had a 12% coupon.

The company refinanced the notes in November 2011 by redeeming $8.8 million of the existing notes for cash and changing the terms of the remaining $10 million of notes to provide for a 9% interest rate and an October 2013 maturity date. The notes were further changed in December 2012 to extend the maturity date to March 31, 2015.

Resource America is a Philadelphia-based asset management company.

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